Case No. 00-19258-LBRUnited States Bankruptcy Court, D. Nevada
November 20, 2002
Laurence M. Frazen, Esq., BRYAN CAVE LLP., Kansas City, Missouri, Special Counsel for National Airlines, Inc.
James Shea, Esq., SHEA CARLYON, LTD., Las Vegas, NV., Local Counsel for National Airlines, Inc.
ORDER AUTHORIZING DEBTOR TO REJECT CERTAIN EXECUTORY CONTRACTS (AIRCRAFT AND ENGINE LEASES)
LINDA RIEGLE, United States Bankruptcy Judge
This matter having come before the Court (the “Hearing”) pursuant to the Motion of NATIONAL AIRLINES, INC. (“Debtor”), for Order Authorizing Debtor to Reject Certain Executory Contracts, pursuant to § 365(a) of the Bankruptcy Code. Accordingly, the Court hereby finds as follows:
1. The Debtor leases a fleet of Boeing 757 aircraft and spare engines pursuant to leases described on Exhibit A attached hereto (the “Leases”).
2. Since the Debtor has ceased operations, the Leases are of no value to the estate.
3. To the extent the Leases have not been terminated by the lessors under the Leases or by operation of law, the Debtor is hereby authorized and directed to reject the Leases pursuant to 11 U.S.C. § 365(a).
4. The rejection of the Leases and the entry of this Order shall in no way constitute a waiver of or in any way affect the rights of the lessors under the Leases, including, but not Limited to, their rights to assert pre- and post-petition claims and their rights to file with the FAA any pre-signed lease termination certificates originally delivered by Debtor at the time of closing of any original Leases, which filing is hereby authorized and approved.
5. The Debtor is authorized and directed to execute and deliver to the lessors any all additional documents and to take any and all additional steps which the lessors may reasonably request as necessary to confirm the termination of the Leases and to terminate the Leases of record with the FAA including, but not limited to, the delivery of executed lease termination certificates in form and substance acceptable to the FAA for recording purposes.
6. The authorization contained herein to reject the Leases of the spare engines is prospective only and will not become effective unless and until the spare engines are returned to the lessors, provided, however, that this order does not impose liability on owners of aircraft for rent due under Leases of spare engines.
7. All persons or entities in possession or control of any parts or equipment belonging to the lessors or constituting part of the leased aircraft or leased engines are authorized and directed to return same to the lessors owning same. Nothing herein shall be a determination of who shall bear the cost of such returns. Additionally, nothing herein shall be interpreted to effect or determine the validity, extent or priority of any lien or interest in or to any aircraft, parts or equipment. The stays of 11 U.S.C. § 362 are hereby modified to allow the aircraft and engine lessors and any holder of a lien or interest in such property to preserve and pursue all of their rights and remedies with respect such property.
EXHIBIT A LEASES TO BE REJECTED